Movie theater company AMC Entertainment Holdings AMC could highlight market share gains and a strong box office performance when the company reports third-quarter financial results Wednesday after the market close.
AMC Earnings Estimates: Analysts expect AMC to report third-quarter revenue of $1.33 billion, down from $1.41 billion in last year's third quarter, according to data from Benzinga Pro.
The company has beaten revenue estimates from analysts in nine of the last 10 quarters, missing in the most recently reported second quarter.
Analysts expect the company to report a loss of 11 cents per share, compared to a loss of 9 cents per share in last year's third quarter. The company has beaten analyst estimates for earnings per share in seven of the last eight quarters, meeting expectations in the most recently reported second quarter.
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What AMC Analysts Are Saying: Wedbush analyst Alicia Reese detailed the company's potential market share gains in an investor note after second-quarter financial results.
The analyst, who has a Neutral rating and a $4 price target, said the company needs to reduce its high debt load to help with future growth.
"AMC can also drive revenue growth in Europe with theater upgrades. However, it is unlikely to do so until it works through balance sheet right-sizing," Reese said.
The analyst said a large network of premium screens and concert movie distribution deals could help "justify its premium valuation," but cautioned on more potential capital needed to cover interest payments.
“We expect AMC’s shares to remain volatile as its shareholders dislike its frequent share issuances.”
Benchmark analyst Mike Hickey said AMC's second quarter saw a strong performance with several box office hits.
The analyst, who has a Market Weight rating and no price target, said the concession revenue per attendee was up in the second quarter for domestic theaters along with higher average ticket prices, positives for the company.
Key Items to Watch From AMC: The third-quarter box office rose 0.6% year-over-year domestically according to data from BoxOfficeMojo. The quarter saw hit films like "Deadpool & Wolverine," "Despicable Me 4," "Twisters" and "Beetlejuice Beetlejuice" released.
AMC's quarterly report comes after peer Cinemark Holdings CNK reported quarterly earnings that saw earnings per share and revenue both beat analyst estimates. The company’s shares rose after the report, and analysts raised their price targets.
Cinemark said the third quarter box office exceeded expectations and was the highest quarterly total since the COVID-19 pandemic.
A similar report from AMC could go a long way toward showing a box office recovery and growth ahead.
Fourth-quarter domestic box office hasn't been as strong, with "Venom: The Last Dance" the current top film of the quarter at $92.0 million. Upcoming movies like "Gladiator II," "Moana 2," "Wicked," "Sonic the Hedgehog 3" and "Mufasa: The Lion King" could bring optimism for a strong end to the year for movie theater companies.
AMC CEO Adam Aron has been more optimistic about upcoming years than 2024, which could be echoed in his commentary on Wednesday.
“With a long list of blockbuster movie titles opening in theaters during the remainder of the year and into 2025 and 2026, the industry-wide box office now appears to us to be poised for sustained growth. Looking ahead, we believe that bodes ever so well for the increasing cash generation potential from AMC’s movie theaters both at home and abroad," Aron said earlier this year.
AMC Price Action: AMC stock was up 2.3% to $4.50 on Wednesday versus a 52-week trading range of $2.38 to $11.88. AMC stock is down 28% year-to-date in 2024.
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